Former Fiesta Bowl exec gets probation in campaign-finance scheme

by Craig Harris - Sept. 17, 2012 09:56 PMThe Republic | azcentral.com

Natalie Wisneski, the Fiesta Bowl's former chief operating officer, was sentenced Monday in U.S. District Court to two years' probation after admitting her participation in an illegal campaign-finance scheme that enveloped in scandal one of college football's signature post-season events.

Although she also was fined $100, she was spared jail time because she helped federal and state prosecutors build cases against other current and former Fiesta Bowl employees, including her brother.

Those employees also engaged in the illegal scheme in which they were reimbursed with bowl funds for making contributions to political campaigns.

Six current or former Fiesta Bowl employees, including ex-CEO John Junker, have pleaded guilty to state or federal crimes stemming from investigations that began after The Arizona Republic in December 2009 uncovered the campaign-contribution scheme.

Four of those defendants pleaded guilty this year to misdemeanors in state court. Each was sentenced to pay a fine of up to $4,600, and one ex-officer also was sentenced to 66 hours of community service.

Anthony Aguilar, Wisneski's brother and the bowl's director of community and corporate relations, was sentenced earlier this year to one year of supervised probation and ordered to pay a $4,500 fine.

Junker, who awaits sentencing in state and federal courts, has paid the bowl $62,500 in restitution.

Former bowl lobbyist John MacDonald recently pleaded guilty to a misdemeanor for not properly disclosing spending on travel for lawmakers while currying their favor on behalf of the bowl. He is awaiting sentencing.

Wisneski made a brief statement in court Monday apologizing to the Fiesta Bowl and others for her mistakes. About 20 family members and friends attended.

"I am deeply burdened," Wisneski said, addressing U.S. District Judge James Teilborg. She conceded that laws were broken but that it was never her intention.

A Fiesta Bowl spokesman declined to comment.

Wisneski, by her own admission, was a central figure in the campaign-contribution plan that began in the early 2000s and lasted until around 2009.

She was responsible for reimbursing with bonuses certain employees who made personal financial contributions to local, state and federal candidates.

The bowl reimbursed 11 staffers for more than $40,000 in political donations.

The contributions were intended to gain favor with politicians in positions to pass legislation favorable to the Fiesta Bowl, or to stop bills that could harm the organization.

The bowl took state legislators on expensive out-of-town trips for the same purpose.

Both practices have ended.

Candidates who took contributions from bowl employees have said they were unaware of the illegal scheme.

The Maricopa County Attorney's Office examined the roles of politicians who took gifts from the bowl without properly reporting them, but it charged no one.

Wisneski, prior to Monday's sentencing, had pleaded guilty to one federal felony conspiracy charge as part of a plea agreement with federal prosecutors.

She faced up to a year in prison. The federal government in November 2011 indicted her on nine charges, seven of which were felonies.

Wisneski said during the hearing that she "owned up" to her mistakes and did not shy away from offering evidence that incriminated herself.

John Leonardo, U.S. attorney for Arizona, had stated in court filings that his office agreed to probation, citing her "full and continued cooperation" with law enforcement.

Wisneski did not face any state charges because she also has helped the Arizona Attorney General's Office in its investigation of related matters.

The state continues to investigate Gary Husk, a former lobbyist for the bowl who has maintained his innocence.

Assistant U.S. Attorney Frank Galati in court Monday acknowledged that Wisneski cooperated with law enforcement and said that she posed no danger to the community. He also said Wisneski no longer has a substantial job with perks.

Wisneski dropped out of college and began working at the Fiesta Bowl in 1989 as an entry-level accounting clerk.

Three years later, she was promoted to assistant controller. Following a series of promotions, she was elevated in 2006 to chief operating officer, the second-highest position at the bowl.

She was forced to resign in March 2011, following the bowl's independent investigation. That probe uncovered widespread financial mismanagement under Wisneski's watch and confirmed The Republic's findings of a campaign-finance scheme.

Wisneski had a total compensation of $363,261 her last year on the job, bowl records show.

The bowl also paid for her golf-club membership, vehicle and cellphone allowances and reimbursement for home Internet, satellite radio and television.

In 2009, the bowl paid for her to attend a Hispanic businesswomen's retreat in Paris.

James Burke, Wisneski's attorney, said there was no doubt his client participated in the scheme, but he said Wisneski followed the orders of her boss, Junker.

Burke also said Wisneski received no financial benefit from the scheme.

Junker's attorney has agreed, saying previously that Junker was her supervisor and "was directly involved in the activities she engaged in." Junker's attorney could not be reached for comment Monday.

Burke added that Wisneski currently is unemployed and that she divorced last month.

"We are happy with probation. I don't know if she deserved a felony, but we are happy with the sentence," Burke said. "This will be with her for the rest of her life."